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You are here: News Journos » Business » Target Walmart DEI decisions could hurt Black founders
Target Walmart DEI decisions could hurt Black founders

Target Walmart DEI decisions could hurt Black founders

News EditorBy News EditorFebruary 19, 2025 Business 7 Mins Read

Brown Girl Jane, a Black-owned fragrance brand, has experienced significant sales growth since partnering with Sephora, following a commitment to the 15 Percent Pledge aimed at increasing the representation of Black-owned brands in retail spaces. With sales more than doubling since Sephora began promoting their products, the brand highlights the crucial role of retail partnerships in supporting small businesses owned by people of color. However, as major retailers like Walmart and Target scale back similar equity initiatives, concerns arise about the sustainability of such support for emerging Black-owned brands in competitive markets.

Article Subheadings
1) The Impact of Retail Partnerships on Black-Owned Brands
2) The Changing Landscape of Diversity Initiatives
3) Companies that Remain Committed to Diversity
4) The Evolution of the 15 Percent Pledge
5) Challenges Ahead for Emerging Black Founders

The Impact of Retail Partnerships on Black-Owned Brands

Brown Girl Jane, founded by Malaika Jones and her sister Nia Jones, is a narrative of resilience and opportunity within the beauty industry. The brand offers a range of fragrances that celebrate Black culture and heritage. Their breakthrough came after Sephora agreed to carry their products, marking a significant milestone for the company. This partnership was not merely transactional; it fostered growth and visibility. Sephora’s strategic decision to promote Brown Girl Jane products resulted in a remarkable doubling of the brand’s sales since the collaboration began.

Furthermore, the partnership comes in the wake of Sephora’s commitment to the 15 Percent Pledge, an initiative aimed at amplifying Black-owned brands in retail spaces. This pledge means that participating companies aim to commit 15 percent of their shelf space to products from Black-owned businesses, which is reflective of the demographic makeup of the U.S. population. Malaika Jones emphasized that Sephora’s support helped level the playing field against larger brands that dominate the industry with extensive marketing budgets.

In addition to promotional support, Sephora provided Brown Girl Jane a $100,000 grant to expand its business initiatives, participate in mentoring programs, and better connect with potential shoppers unaware of the brand. This multifaceted approach is integral for businesses led by people of color, which often face systemic barriers to financial backing and market entry.

The Changing Landscape of Diversity Initiatives

Despite the successes shown by companies like Brown Girl Jane, the broader market landscape is evolving negatively for many Black-owned brands. In recent months, major retailers such as Walmart and Target have announced significant rollbacks in their diversity, equity, and inclusion (DEI) initiatives. While these programs were designed to help brands founded by people of color access the market, shifts in corporate strategy have put some of these vital partnerships at risk.

Take for instance, Target’s recent decision to discontinue certain DEI commitments that had originally set ambitious goals for increasing the visibility of Black-owned brands. Originally pledging to feature over 500 Black-owned products by 2025, the retailer’s current commitments signal a move away from those obligations.

Similarly, Walmart has significantly reduced its DEI efforts, including shuttering the Center for Racial Equity, which was intended to tackle systemic financial hurdles faced by Black entrepreneurs. This trend is troubling for brands that rely heavily on support from large retailers for awareness and consumer reach. Malaika Jones cautioned that the bevy of small brands requires consistent support from retailers to survive and thrive, noting that without such commitment, reaching the masses in a competitive retail space becomes exponentially more challenging.

Companies that Remain Committed to Diversity

Amidst the withdrawal of some major retailers from diversity initiatives, others are reinforcing their commitment. Companies like Sephora, Costco, and E.l.f. Beauty are still actively engaged in amplifying Black-owned brands. Sephora has notably increased the number of Black-owned brands on its shelves from three percent to approximately ten percent since 2020, demonstrating a clear commitment to the 15 Percent Pledge.

Sephora’s Accelerate program, launched in 2016, continues to mentor and support Black and minority founders, ensuring they have the tools needed to succeed in the market. In 2020, as the racial justice movement gained momentum, the focus of this program shifted specifically towards these underrepresented founders, addressing a critical gap in their product offerings.

As noted by Artemis Patrick, President of Sephora North America, the inclusion of diverse brands aligns with the evolving needs of consumers, signifying both moral and business imperatives. The merchandise offerings not only serve a wide range of demographics but also provide the unique appeal that attracts newer generations of shoppers.

The Evolution of the 15 Percent Pledge

Initiated by Aurora James in response to social justice movements post-George Floyd’s death, the 15 Percent Pledge has garnered significant traction among retailers. This initiative encourages businesses to offer 15 percent of their shelves to brands owned by Black entrepreneurs. The pledge has led to visible changes in retail spaces, such as the introductions of products from numerous Black-owned brands.

Sephora was the first significant retailer to sign the pledge, and its efforts over the past five years showcase how this commitment can lead to meaningful change. The number of Black-owned brands available at Sephora has surged from eight to thirty since the inception of the pledge, indicating a growing recognition of the importance of diversity in product offerings.

Nevertheless, some corporations are beginning to retreat from such commitments, stirring concerns about the future viability of the pledge. Aurora James, reflecting on these shifts, expressed disappointment in the inconsistency of commitment among major retailers, stating that the initial enthusiasm toward diversity might not have been as resolute as public statements suggested.

Challenges Ahead for Emerging Black Founders

The changing retail landscape and the scaling back of diversity initiatives pose serious risks for Black founders and businesses striving to gain visibility. Many smaller brands depend heavily on partnerships with large retailers to establish market presence and consumer awareness. As these partnerships diminish, the path for upcoming founders becomes increasingly precarious.

Black founders, like Brandon Blackwood, who achieved remarkable success due to viral awareness, worry about the cascading effects of reduced opportunities for new retailers and lack of recognition of their innovative products. Malaika Jones posed a stark reminder that without intentionality from buyers to seek out diverse brands, vital opportunities could easily slip through the cracks, leading to fewer options for consumers and diminishing the voices of Black entrepreneurs.

In this evolving corporate context, Black-owned brands stress the importance of maintaining visibility and presence—efforts that are made more challenging by shifting corporate priorities. Initiatives that once showcased a diverse offering may backtrack, and ultimately, the stakeholders involved—a diverse range of consumers as well as the founders—may suffer the consequences.

No. Key Points
1 Brown Girl Jane’s sales doubled since partnering with Sephora under the 15 Percent Pledge initiative.
2 Major retailers like Walmart and Target are scaling back their diversity and inclusion efforts.
3 Sephora and specific other companies are still committed to increasing Black-owned products on their shelves.
4 The 15 Percent Pledge has resulted in noticeable increases in Black-owned brands among retail offerings.
5 Challenges facing Black founders may intensify as retailers back away from diversity initiatives.

Summary

The landscape for Black-owned brands within retail has experienced both growth and setbacks as companies navigate their commitments to diversity. Brands like Brown Girl Jane have benefited significantly from partnerships with retailers like Sephora, which have actively participated in initiatives like the 15 Percent Pledge. Meanwhile, caution arises with major retailers like Walmart and Target retracting from diversity commitments, presenting potential challenges for emerging Black brands striving for recognition. As the situation evolves, stakeholders will need to reassess how to sustain these vital partnerships to ensure diverse representation in the retail sector remains a priority.

Frequently Asked Questions

Question: What is Brown Girl Jane known for?

Brown Girl Jane is known for its line of fragrances that celebrate Black culture and heritage, founded by sisters Malaika and Nia Jones.

Question: What is the 15 Percent Pledge?

The 15 Percent Pledge is an initiative that encourages retailers to allocate at least 15% of their shelf space to products from Black-owned businesses, reflecting their demographic representation.

Question: Why are diversity initiatives being scaled back by some retailers?

Some retailers are scaling back their diversity initiatives due to political pressure, fear of litigation, and shifts in corporate priorities that may focus more on immediate fiscal concerns rather than long-term commitments to diversity.

Black Business Ethics Business Growth Business News Business Technology Consumer Trends Corporate Finance Corporate Strategy decisions DEI Economic Outlook Entrepreneurship founders Global Business hurt Innovation Investment Opportunities Leadership Management Market Trends Mergers & Acquisitions Retail Business Small Business Startups Supply Chain Target Walmart
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